About the CAGR Calculator
Compound Annual Growth Rate Calculator — Calculate the annualized compound growth rate between a starting value and an ending value over a number of years.
Formula or method
CAGR (%) = ((ending ÷ starting)^(1 ÷ years) − 1) × 100. The growth multiple is ending divided by starting.
Worked example
An investment rising from 10,000 to 16,000 over four years has a CAGR of approximately 12.47%.
How to use the tool
- Enter beginning and ending values.
- Enter the number of years.
- Read CAGR, absolute growth and growth multiple.
Common uses
Investments, revenue reporting, multi-year performance.
Assumptions and limitations
CAGR smooths the path and ignores volatility, contributions, taxes, fees and cash-flow timing. It is not a guarantee of future returns.
Frequently asked questions
What is the difference between CAGR and average yearly return?
CAGR represents a single compounded rate connecting the beginning and ending values; arithmetic average returns can differ.
Privacy and support
Your inputs are processed locally in your browser. ToolMosaic does not upload or store the values you enter in this tool. Our tools are free, and we appreciate your support.